Virginia Consumers Will Soon See Less Junk Fees, Which Add Money to Purchase Costs

RICHMOND, Va. — Virginia consumers should see less hidden fees on the purchase price of certain items, starting in July.

Gov. Glenn Youngkin on May 2 approved twin bills from the Virginia House and Senate that update the Virginia Consumer Protection Act and will force certain businesses to disclose the total price of services and products before a purchase.

Hidden fees and surcharges often tacked on near the end of a purchase will become a more clear part of the advertised price, according to the legislation.

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The bills were stalled at the governor’s office after clearing the General Assembly. Youngkin had sent the bills back with the request to have a 2026 reenactment clause, which meant it would have faced the same legislative process next year. All 100 seats in the House of Delegates face an upcoming election, which could have changed the current Democratic-majority and possibly swayed the bill’s outcome.

Youngkin also asked for health clubs to be included in the list of businesses exempt from mandatory fee disclosure.

There was some bipartisan support among lawmakers, who rejected his changes and sent the bills back to the governor. Youngkin had until May 2 to take any counter action, such as a veto.

An average U.S. household spends around $650 in junk fees a year on the 10 most dominant industries that use junk fees. In addition to credit card and banking fees, some of the fees are from industries that include airlines, hotels and food delivery, according to a 2024 White House report.

Sen. Stella Pekarsky, D-Fairfax County.

Sen. Stella Pekarsky, D-Fairfax County, introduced Senate Bill 1212 and Del. Adele McClure, D-Arlington, sponsored House Bill 2515. Pekarsky first introduced the mandatory fee disclosure bill during the 2024 session, but it was shot down in the House after passing the Senate.

Pekarsky told the Senate General Laws and Technology Committee that they worked on the legislation in the past year to ensure it was clear and understandable.

“This new version of the bill is modeled after legislation that was successfully passed in other states,” Pekarsky said.

The amount paid in hidden or “junk” fees is likely in the thousands of dollars for a household, according to Ryan O’Toole, the co-executive director of Freedom Virginia, a nonpartisan organization focused on economic security and affordability. These fees only help the industries make extra profit; customers don’t receive any additional benefits for paying these mandatory add-ons, he said.

“Especially in today’s economy, we feel like the General Assembly, state government, should be doing anything it possibly can to lower the cost of living for the working people,” O’Toole said.

Rhena Hicks, the other executive director, said transparency is important for consumers making online purchases.

“Virginians deserve honesty and truth in pricing,” Hicks said. “We deserve to know the full cost upfront. Hidden fees undermine trust.”

By Marlin Adams
VCU Capital News Service

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.